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India's e-commerce sector projected to hit $300 bn by 2030: Report

26 Oct '23

2 min read

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India's e-commerce market is set to skyrocket from $59 billion in 2022 to $300 billion by 2030, driven by mass consumers and the adoption of online shopping in smaller cities, as per a recent Redseer report.
Efficient logistics and a likely 23 per cent reduction in 3PL shipment costs are projected to play a critical role in e-commerce growth.

India's e-commerce market is poised for remarkable growth, set to expand from $59 billion in 2022 to an estimated $300 billion by 2030, according to the Logistics Needs of Indian D2C report by Redseer. This surge is expected to be propelled by 'mass' consumers—everyday people who are increasingly relying on online shopping platforms for their various needs, possibly due to factors like affordability, ease of access, and a broader product selection.

The report identifies several key dynamics influencing this uptrend. One is the evolution of the category mix in e-tailing, where lower average selling price (ASP) categories will claim a larger share of the gross merchandise value (GMV). Another driving factor is the rapid embrace of online shopping in tier-2 and smaller cities. Coupled with a growing consumer base and enhanced third-party logistics (3PL) services, these factors are contributing to a significant rise in shipment volumes.

Interestingly, the increase in shipments is set to outpace GMV growth. This trend accentuates the necessity for robust logistics and supply chain management, especially to meet the escalating demand in smaller cities, as per the report.

On the logistics front, the report forecasts a 23 per cent reduction in shipment costs for 3PL companies, from ₹60 per shipment in 2023 to an estimated ₹47 by 2030. This downward trend in costs is attributed to the aggregation of demand in smaller cities and vital policy adjustments, facilitating more efficient and cost-effective operations. Despite these optimistic projections, the 3PL sector faces its share of challenges, including safeguarding shipments, resolving weight-related disputes, and improving the return-to-origin processes and overall responsiveness.

Fibre2Fashion News Desk (DP)

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